On September 7, 2023, Christopher Wright, the Chairman of the Board & CEO of Liberty Energy Inc (LBRT, Financial), sold 69,602 shares of the company. This move is part of a larger trend, as over the past year, the insider has sold a total of 403,154 shares and purchased none.
Liberty Energy Inc is a leading provider of hydraulic fracturing services to onshore oil and natural gas exploration and production companies in North America. The company's services consist primarily of hydraulic fracturing, in addition to well construction and completion, and other complementary services. Liberty Energy Inc operates in active oil and gas basins, including the Permian Basin, the Eagle Ford Shale, and the Denver-Julesburg Basin.
The insider's recent sell-off is part of a broader trend within the company. Over the past year, there have been 24 insider sells and no insider buys. This could be a signal to investors about the company's future prospects, as insiders often have unique insights into a company's operations.
On the day of the insider's recent sell, shares of Liberty Energy Inc were trading for $17.88 apiece, giving the company a market cap of $3.037 billion. The price-earnings ratio is 5.29, which is lower than the industry median of 9.15 and lower than the company’s historical median price-earnings ratio.
According to the GuruFocus Value, which is an intrinsic value estimate based on historical multiples, a GuruFocus adjustment factor, and future estimates of business performance, Liberty Energy Inc is modestly undervalued. With a price of $17.88 and a GuruFocus Value of $23.68, the stock has a price-to-GF-Value ratio of 0.76.
The insider's decision to sell a significant number of shares could be a signal to investors about the company's future prospects. However, it's also important to note that the stock is currently undervalued according to the GuruFocus Value. Therefore, investors should carefully consider these factors when making investment decisions.
As always, it's crucial to conduct thorough research and consider multiple factors before making investment decisions. Insider transactions can provide valuable insights, but they are just one piece of the puzzle.
